Robert H. Schottenstein, Chairman, CEO, and President of M/I Homes, Inc. (NYSE:MHO), recently sold a substantial portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Schottenstein divested a total of 5,079 common shares on November 25, 2024. The shares were sold at prices ranging from $170.38 to $170.76, generating a total of $934,547.
Following these transactions, Schottenstein retains direct ownership of 344,012 shares. Additionally, he holds 189,587 shares indirectly as the sole trustee and beneficiary of The Irving E. Schottenstein 2002 Trust No. 2. It's also noted that his spouse owns 10,000 shares, which Schottenstein disclaims beneficial ownership of.
These transactions reflect Schottenstein's ongoing management of his investment in M/I Homes, a leader in the real estate and construction industry.
In other recent news, M/I Homes reported a successful third quarter with record numbers in home deliveries, revenue, and income. The company saw an 8% increase in homes closed year-over-year, contributing to a 9% rise in Q3 revenue to $1.1 billion and a 6% increase in pre-tax income to $188.7 million. The mortgage segment also experienced a 31% increase in pre-tax income and a 27% revenue increase.
M/I Homes' CEO, Bob Schottenstein, anticipates continued growth and strong performance in the future. The company is expanding its Smart Series offerings and attached townhomes, which now constitute 20% of the business. Despite potential upward pressure on insurance costs post-hurricane and downward pressure on margins due to increased incentives and rate buy-downs, M/I Homes maintains a strong financial position.
The company's land investments increased to $1.6 billion, indicating a robust pipeline for future development. M/I Homes' strategic share repurchase activity reflects a commitment to shareholder value, with no immediate plans to pay dividends. These are some of the recent developments in the company's operations.
InvestingPro Insights
The recent sale of shares by M/I Homes' CEO Robert H. Schottenstein comes at a time when the company's stock has shown significant momentum. According to InvestingPro data, MHO has delivered a robust 60.2% return over the past year, with a particularly strong 35.53% gain in the last six months. This performance aligns with an InvestingPro Tip highlighting the company's "high return over the last year."
Despite the CEO's sale, M/I Homes' financial health appears solid. The company boasts a price-to-earnings ratio of 8.53, suggesting it may be undervalued compared to industry peers. Additionally, MHO operates with a moderate level of debt and has liquid assets exceeding short-term obligations, as noted in InvestingPro Tips.
Investors should also consider that MHO's stock price movements are quite volatile, which could explain the CEO's decision to realize gains. However, with analysts revising earnings upwards for the upcoming period and predicting profitability this year, the company's outlook remains positive.
For those seeking a deeper understanding of M/I Homes' financial position, InvestingPro offers 11 additional tips not mentioned here, providing a comprehensive analysis for potential investors.
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